Today we witnessed a huge upside momentum day in the Nasdaq 100, this is an extremely bullish signal and should set the stage for another 5% to 10% move in the Nasdaq 100 and in technology stocks.
As I mentioned in my previous blog, a secret that I learned from my hedge fund days was when you want to play a hot sector, such as technology right now, you want to try and buy the cheapest most volatile stocks which will give you the biggest returns when that sector or group is trending up. Remember the old investing adadge, “A Rising Tide lifts all Boats” and that is especially true in the stock market and with stock sectors. When a sector is hot such as technology and internet stocks are today, every stock in that sector will move up in tandem with the Nasdaq 100 or with the technology group.
So instead of buying a boring ETF like the $QQQ or $XLT which might make you a 5% or 10% at most return, you want to play the hottest most liquid stock, (meaning a stock with high average volume so institutions can buy it) but also has a cheap stock price preferably under $5. This combination is absolutely deadly and when you find a stock that fit this criteria in a hot sector you have to jump all over it. I found just the stock and even better it has one of the best chart patterns I have ever seen, a bullish flag pattern.
This stock which sells for less than $5 but trades more than 20 million shares a day is a technology stock and has quite possibly the most bullish chart I have seen, since it has completed a classic flag formation, probably the most powerful bullish chart pattern in the world. A flag formation is very rare and occurs only after a stock has moved up a minimum of 75% to 100% in price within a short period of time and then consolidates and then breaks out again. The great thing about the flag chart pattern is that it produces more triple digit winners than any other chart pattern I have ever seen.
To get a copy of this annotated chart with the flag pattern drawn in and the name of the stock that I am talking about please email me at
firstname.lastname@example.org . I promise you don’t want to miss this one, this stock has very little downside, since it has tons of cash and zero debt yet could easily double in price over the next 3 months.
Editor of the Billionaires Portfolio